Why Boyd Gaming's Shares Hit a Jackpot Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Boyd Gaming rose 18% today after the company reported earnings.
So what: Revenue was up 20% in the second quarter to $738.7 million, mainly because of the Peninsula Gaming acquisition late last year. Net income was $11.6 million and adjusted earnings per share were break-even versus an expected loss of a penny.
Now what: The Las Vegas locals market is performing better than expected, resulting in a tiny rise in revenue from a year ago. That may not sound impressive, but nearly every casino outside of Las Vegas is seeing revenue decline, so the fact that the locals market is holding steady is a positive. There's still a long way to go before Boyd becomes solidly profitable or a great buy for investors, but this is a step in the right direction.
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The article Why Boyd Gaming's Shares Hit a Jackpot Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.